Access to affordable and stable housing is more than an economic issue; it is a human right and the foundation for long-term stability and equity in Canada. As Parliament returns, Prime Minister Mark Carney’s government has unveiled Build Canada Homes—a sweeping initiative designed to expand access to affordable housing across the country. The timing of the announcement is no coincidence. With 1.5 million Canadian households needing rents below $1,680/month, the government is signaling that housing affordability will be front and center in this session.
But will this plan be enough to tackle Canada’s deep housing crisis? Let’s break it down.
Why Now?
Canadians are under pressure. Renters across the country are finding fewer and fewer affordable options, with waitlists for non-profit housing stretching into the tens of thousands. For Carney’s Liberals, the return of Parliament is a critical moment to show leadership on a problem that has been worsening for decades.
Why BC isn’t in the First Round
The first wave of projects is being rolled out in cities like Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton—but not in BC. That’s possibly because the province already has a strong program in place. Premier David Eby’s BC Builds initiative has made major strides in non-profit housing development. Given BC’s history of runaway housing costs, the provincial government has been quicker than most to tackle affordability head-on, leaving the federal government to focus its first wave of projects elsewhere. Yet affordability challenges and supply shortages remain. Even with provincial leadership, continued partnership and investment from the federal government will be essential to meet the province’s full housing needs.
What’s in the Plan?
The initiative is ambitious, with both immediate projects and long-term capacity building:
- 4,000 units of factory-built homes in the first phase
- Up to 45,000 additional units across the federal land portfolio
- 700 public homes in Nunavut to address northern housing shortages
- Implementation of the nearly $1.5 billion Canadian Rental Protection Fund (proposed in 2024) to help non-profits purchase and preserve affordable rental housing
- Emphasis on modular construction, which can reduce costs by up to 20% and speed up timelines
- Unlocking federal lands, cutting as much as nine years from typical land disposal cycles
- Support for transitional and supportive housing, often overlooked in previous programs
The Potential Impact
Canada lags behind peer nations when it comes to social housing. Just 3–6% of the housing stock is non-profit, compared to 20–50% in countries that successfully house low-income families.
The Build Canada program won’t close that gap overnight, but it’s a meaningful step. Non-profit and co-op housing has proven long-term affordability advantages: units start at $150–$200 less per month than market rent, with the gap widening to $400–$500 less per month over time. That’s the kind of affordability that lasts.
Non-profit organizations, which already manage long-term affordable housing, stand to benefit from the expanded Rental Protection Fund. If scaled properly, this could preserve and grow non-profit housing at a time when the private market continues to push prices upward.
The Pros and Cons
The program’s strengths lie in its ability to speed up land access and approvals, provide long-term financing, and support modular construction that can reduce costs and timelines. BSH research shows that these steps address key barriers to non-profit housing development in Quebec, and purpose-built rental housing in British Columbia. It also signals another shift in how Canada Lands Company properties are used, prioritizing housing over profit-motivated sales, and includes much-needed recognition of supportive housing.
However, major concerns remain. The program has yet to outline how projects will be selected, does not directly address homelessness, and lacks an Indigenous-specific housing strategy. Federal leverage over municipal zoning and fees is also unclear, which may constrain the plan’s effectiveness.
Key strengths include:
- Speeds up land access and approvals
- Long-term, predictable financing (a long-standing sector demand)
- Boosts modular and innovative construction methods
- Unlocks Canada Lands Company properties for housing, rather than profit-motivated sales
- Begins to address supportive housing needs
Some concerns:
- Many details remain unclear, including how projects will be selected
- The program does not directly address homelessness
- Indigenous-specific housing strategies appear to be absent
- Federal leverage over municipal zoning and fees is unclear
The Bottom Line
Build Canada Homes is not a silver bullet, but it may be a turning point. By investing in non-profit, co-op, supportive housing, and by creating the financing and land pathways to make projects possible, Ottawa is reasserting itself in an area it abandoned 30 years ago. The challenge now is scale. Four thousand homes is a start, but with 1.5 million Canadians struggling to pay rent, it’s clear that only sustained, multi-level government action will bring the housing market back into balance. For now, Build Canada Homes represents a step in the right direction: a recognition that housing is more than a commodity—it’s the foundation of community, stability, and opportunity.
Read the official statements here: Prime Minister’s Press Release, Government of Canada – Build Canada Homes
The Balanced Supply of Housing is a SSHRC-CMHC funded, community-based research project at UBC that focuses on land use and housing financialization across Vancouver, Toronto, and Montreal.
